F2Chapter16AlternativeCostAccounting

1、f2 chapter 16 alternative cost accountingaccaspaceprovided byacca research institutecopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺acca f2management accounting (ma)管理會計acca lecturer: belinda qiucopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 2part b service costing1. nature of service costing2. un

2、it cost measures for service costing3. cost per service unitcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 3part b alternative cost accounting1. abc2. target costing3. life cycle costing4. total quality measurementcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 4part b alternative cost accounting

3、1. activity based costingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 5part b alternative cost accounting1.1 steps of abccopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 6part b alternative cost accountingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 7part b alternative cost accounting1.2 abc

4、 versus traditional absorption costing method(1) allocation:abc: cost pool, separate cost drivertraditional : cost center, one cost driver(2) appointment :abc: many cost driver, absorption rate is more reasonabletraditional : commonly use labor hours and machine hours(3) cost driver and absorption r

5、ate:abc: greater accuracytraditional copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 8part b alternative cost accounting1.3 merits of abccopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 9part b alternative cost accounting1.4 criticisms of abccopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 10part b

6、 alternative cost accounting2. total quality management copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 11part b alternative cost accounting2.1 three basic principles of tqmcustomer focus-quality is examined form a customer perspective and the system is aimed at meeting customer needs and expectati

7、on .copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 12part b alternative cost accounting2.2 quality related cost?3 prevention cost: the costs of any action taken to prevent or reduce defects and failures. this include the cost of preventive maintenance, quality, quality, training and the extra cost

8、 of acquiring higher quality materials.?3 appraisal costs: the costs incurred to ensure that materials and products meet quality standards. they include costs of inspecting purchased parts, work in process and finished goods, quality audit and filed test.copyright ? accaspaceaccaspace 中國acca特許公認會計師教

9、育平臺 13part b alternative cost accounting?3 internal failure costs: the costs arising within the organization of failure to achieve the quality specified. they are discovered before the product is delivered and include “down time “ and scrap costs, repair, stoppage caused by defects.?3 external failu

10、re costs: the costs incurred when the products or services fail to conform to requirements or satisfy customers, need after theta have been delivered. they include the costs of handling customers complains, warranty replacement, repair of returned product etc. costs within this category can have a d

11、ramatic impact on future sales.copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 14part b alternative cost accounting3. life cycle costingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 15part b alternative cost accountingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 16part b alternative cost acc

12、ountingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 17part b alternative cost accountingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 18part b alternative cost accountingthe benefits of lfccopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 19part b alternative cost accountingproduct life cycle

13、in forecast-if an organization knows where a product is in its life cycle, they can use this to plan the marketing of that product more effectively and more importantly, the organization may be able to derive an approximately forecast of its sales from knowledge of the current position of a product

14、in its life.copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 20part b alternative cost accounting4. target costingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 21part b alternative cost accountingtarget costing process:copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 22part b alternative cost acc

15、ountingcopyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺 23part b alternative cost accountingq1. which one is the advantage of abc?a. provides more accurate product costsb. simple to applyc. a form of marginal costing and so is relevant to decision makingd. useful when fixed overheads are very low.copyright ? accaspaceaccaspace 中國acca特許公認會計師教育平臺